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Colorscope, Inc.

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by

Kristen Lega

on 2 December 2014

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Transcript of Colorscope, Inc.

Colorscope, Inc.
Financial Consequence
Customer:
($8,300)
In house error:
($3,500)
Improve Profitability
Keep high quality reputation
Small firm advantage (restructure)
Assembly line
Sales team focused on more clients
More profitable clients
Update equipment
Train employees
Change pricing strategies!
Which system is better?
Current system: Same per page price plus specialty fees (no allocation of overhead)

Colorscope, Inc.
By allocating costs to individual jobs you can determine profitability of each job for pricing and reviewing strategy on re-work
Customers under current system still place different demands on company resources but these differences are not reflected in pricing
What should be done about rework?
Quality Control Strategy
Prep -> Scanning ->
QC -
> Assembly -> Output -> QC
Change incentive system?
Document everything & create rework policies


Full Cost is the right metric!
Industry & Market Overview:
-Graphic arts

-Advertising companies in Southern California

-5 Step job process
History:
-Founded on March 1, 1976

-Andrew Cha, owner

-Reputation for quality
Initial Success:
-High-margin clients

-Investments in early technology
Challenges:
-Advent of new technologies employed by competing firms

-Over-dependence on established business
relationships
Full transcript